How does cyclical unemployment provide insight into an economy's performance during a recession?

Cyclical unemployment happens when people lose their jobs because the economy is not doing well, often during a recession. This type of unemployment gives us important clues about how the economy is performing. When many people are unemployed, it usually means that businesses are struggling and not producing as much, which can lead to less spending and investment. For example, if a factory has to lay off workers because fewer people are buying its products, this shows that the economy is slowing down. By looking at the rates of cyclical unemployment, we can understand how deep a recession is and how quickly the economy might recover.